Saturday, February 12, 2011

Nokia seeks alliance with Microsoft

Risky strategy reversal in Nokia: The world's biggest mobile phone maker ties up with Microsoft to stop its downward trend. Nokia does the Microsoft operating system Windows Mobile Smartphone as the central platform, the companies announced on Friday.



One result will be a significant job cuts, Nokia CEO Stephen Elop said without further details. Subsequently, about 1000 Finnish Nokia employees off the job. Nokia's shares fell by more than ten percent.

"I'm here to fight," Elop said on Friday in London to analysts. Nokia loses the lucrative computer phones quickly gaining ground because Apple show off his iPhone and Google Android operating system for the sound. By joining forces, Microsoft and Nokia do a new "mobile ecosystem" forge and thus offer the successful stand up to rivals.

However, Microsoft is currently no power in the smartphone market: the percentage of the current operating system Windows Mobile 7 was modified only slightly more than three percent. The hope now is that Nokia's market power can boost sales. The Canadian Elop joined Microsoft in the fall with Nokia.

"Today will be supplied from a fight a battle between mobile devices mobile ecosystem, and our strengths in this area," said Elop and Microsoft CEO Steve Ballmer. Thus, Nokia to bring its experience in the mobile phone design and support of various languages, it said. In addition, Nokia will take the Microsoft search engine for Bing's mobile phones and services. Nokia's own map service is integrated with Microsoft.

"We are already developing first Windows phones from Nokia," Ballmer announced. The two company leaders could call but still no date for the launch.

Nokia was in the computer-phones so far mainly on its own operating system Symbian, which is to be outmoded. The system will initially support more - after all there are around 200 million Symbian users, "said Elop. "But we are clearly in a transitional phase to Windows Mobile," said Nokia's chief. The open platform MeeGo, developed jointly with the chip giant Intel, the way he degraded by the great hope for a kind of learning project.

Went to the future of Symbian is also the approximately 1,000 Nokia employees in Tampere, Finland, the step down after the announcements of the work and called for clarity, as the broadcaster YLE reported.

Elop vowed his team on an austerity: "There will be significant cuts." The group had high costs. More accurate figures will give it later. Nokia was one of the end of 2010 nearly 132 500 people, including about half of the network equipment provider Nokia Siemens Networks, which is operated jointly with the German group.

Speculation about the relocation of the headquarters of Nokia in Finland, the U.S. issued a rejection Elop. "Finland is our home and will remain so," he said.

The alliance with Microsoft had been widely expected. In recent days, media reports had accumulated over negotiations between the two companies. In addition, an internal speech Elops came into the public sphere in which he bluntly criticized the condition of Nokia.

Among other things, he compared the company with a man standing on a burning oil rig and had to rush yards deep into the ice cold water to survive. Elop on Friday added the short message service Twitter: "Today, Nokia appears to the front." Investors appeared unimpressed by the plan and sent more the Nokia share on dive. The afternoon paper in Frankfurt lost 11.5 percent to just under EUR 7.20. Microsoft's shares started in New York with a minimal increase of 0.15 percent.

Nokia is under pressure, particularly among smartphones. Late last year, Android could pass the Symbian system from Nokia, both of which are now over 30 percent ahead. And as the smart phones have an increasingly larger share of the mobile business, Nokia is also losing ground in the entire mobile phone market. Last year's market share fell after figures from market researcher Gartner from 36.4 to 28.9 percent. In previous years, Nokia led with 40 percent still sovereign.

And the pressure does not yield. Sun Apple working on a cheaper iPhone version to expand its sphere of influence at the expense of Android, Nokia, reported the financial news agency Bloomberg. Apple had previously stated, especially with expensive phones the sound.

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